Eskom's R33.4bn loan deal with China Development Bank

Eskom has signed a $2.5-billion government-backed loan with the China Development Bank, which will be used for construction of Kusile power station.

The loan agreement was signed on Tuesday following bilateral talks between the Chinese President Xi Jinping and President Cyril Ramaphosa.

During the address by the two heads of state, Ramaphosa announced that China and South Africa countries also signed a number of trade agreements totalling $14.7-billion (about R196-billion at current exchange rates).

Eskom Chief Executive Phakamani Hadebe said the loan was part of the cash-trapped power utility’s funding requirement for the financial year, which is currently at 62%.